- Palladyne stated that the ALRRM is capable of exceeding a distance of 350 nautical miles at an unspecified but high altitude.
- This missile can cover this distance at a sustained cruise speed of beyond the required Mach 4.0.
- Palladyne also stated that the ALRRM can deliver a 150-lb warhead air-breathing solid-fuel ramjet.
Palladyne AI Corp. (PDYN) on Wednesday announced that its subsidiary has been awarded a contract by the U.S. Navy to develop new air-launched, near-hypersonic, long-range, low-cost missiles.
Palladyne’s subsidiary GuideTech will develop the new Air-Launched Rapid Response Missile (ALRRM). The company said that ALRRM is expected to deliver nearly hypersonic speed and long range at a fraction of the cost of other hypersonic weapons.
Palladyne AI shares were up more than 15% in Wednesday’s pre-market trade. Retail sentiment on Stocktwits around the company trended in the ‘neutral’ territory. PDYN was the second most trending ticker on the platform at the time of writing.
What Is ALRRM Capable Of?
Palladyne stated that the ALRRM is capable of exceeding a distance of 350 nautical miles at an unspecified but high altitude. This missile can cover this distance at a sustained cruise speed of beyond the required Mach 4.0. Palladyne also stated that the ALRRM can deliver a 150 lb warhead air-breathing solid fuel ramjet (SFRJ).
“The 2025 National Security Strategy explicitly states that the U.S. must build ‘next-generation missiles with a clear and urgent need for cost-effective, high-performance strike capabilities’ for the U.S. military,” said Palladyne AI CEO Ben Wolff.
Wolff added that the ALRRM can deliver on these strategic needs at a fraction of the cost.
“We believe there is no other missile currently available to the U.S. military that combines the speed, range, and payload capacity of the ALRRM, at this size and price point — creating a new strike class for 5th gen fighters that is stealth-borne, near-hypersonic, and deep-theater strike,” he added.
This comes amid the ongoing Iran war, with the U.S. having incurred over $11 billion in the first week of the conflict. The Trump administration could reportedly seek an additional funding of $50 billion to replenish the weapons stockpile of the U.S.
What Does Palladyne AI Do?
Palladyne AI is a Salt Lake City, Utah-based company developing AI and autonomy solutions, advanced avionics and more for the defense and industrial markets.
Earlier this month, the company reported a loss of $0.16 per share on revenue of $1.66 million, while Wall Street expected a loss of $0.14 per share on revenue of $0.81 million, according to Fiscal.ai data.
PDYN stock is up 59% year-to-date, but down 12% over the past 12 months. The iShares Micro-Cap ETF (IWC) is up 39% over the past 12 months, while the Themes Generative Artificial Intelligence ETF (WISE) is up 1%.
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